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Document66634.1

HowToSetupandDefineaCycleCount(DocID66634.1)

APPLIESTO:
OracleInventoryManagementVersion11.5.10andlater
Informationinthisdocumentappliestoanyplatform.
Checkedforrelevanceon22APR2010

GOAL
DescribetheminimumrequirementstodefineaCycleCount
SCOPE&APPLICATION
Thisisintendedforthosewhohaveneversetup/defineacyclecount.

SOLUTION
CycleCountisdividedintotwoprimaryfunctions:ABCAnalysisand
DefiningaCycleCount.WewillfirstdiscusshowtoperformanABCAnalysis
andthenhowtodefineandrunaCycleCount.Thefunctionsdescribed
herepertainstoallversionsoftheInventoryapplication
(Character,GUI,andNCA).

ABCANALYSISOVERVIEW
ABCAnalysis:
ABCanalysisisamethodofdeterminingthevalueofitemsinyourinventory,
rankingyouritemsaccordingtoacriterionandthengroupingitemsintoclasses.
"ABC"referstotherankingsyouassignyouritemsasaresultofthisanalysis,
where"A"itemsaremorevaluablethan"B"itemsandsoon.

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ABCClassification:
ClassificationistheprocessofassigningitemstogroupscalledABCclasses.
OracleinventoryallowsyoutouseyourownterminologytodefineABCclasses.

ABCRanking:
OracleInventoryallowsyoutochooseoneof15compilationcriteriafor
performinganABCanalysis,andallowsyoutomaintainmultiplerankingsofthe
samesetofitems.

STEPSTODEFINEANABCCOMPILATION
1.DefineanABCCompile
Enteryourcompilation
Name,
Description,
Criterion(choosefrom15choices)
Subinventory,
Costtype,
ContentandValuationScope(restrictedtosubinventory),
CompileSpecification(Currentonhandquantity)
Save
ClickonCompile
WhenthecompilationhascompletedrequerytheABCcompile.When
thequeryreturnitshouldhavevaluesintheseadditionalfields:
CompileStatus=Completed
TotalInventoryItems=
TotalInventoryValue=
Iftheabove3fieldsdonohaveavalueinthemthecompiledidnot
completesatisfactory.Determineproblem,correctandresubmit
compile.

2.DefineABCClasses
EntertheClasses
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Name=
Defineclassnamesthatsuityourbusinessenvironment
UsetheseclassestogroupitemsinyourABCcompilation
Description=
BeforeyouassignitemstoABCclasses,youmustdefineanABCgroup.

3.DefineABCGroups
EnterABCGroup
Name=<98stores>
ABCCompile=
ABCClasses
Sequence=
Name=
AnABCgroupmayhaveanunlimitednumberofABCclasses.
Arankof1ishigherthanarankof2andsoon.
Assignitemsofhigherrelativevaluetoclassesofhigherrank.

4.DefineABCAssignments
AssignSequenceNumber
Baseyourassignmentonthenumberofitemsinyoucompilation.
Choosethesequencenumberthatcorrespondstothelastitemin
eachclass.
AssignItemPercent
Baseyourassignmentonthepercentageofitemsinyoucompilation
Chooseavaluefromtheremainingunassignedpercentageofthetotal
Numberofitems.Forexample,ifyouassign60%ofyouritems
toclassA,thenyoumustchooseavaluebetween0%and40%for
thenextclass.
AssignInventoryValue
Baseyourassignmentontheinventoryvalueoftheitemsinyou
compilation.
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Choosethecumulativeinventoryvaluethatcorrespondstothelast
itemineachclass.
AssignValuePercent
Baseyourassignmentonthepercentageofinventoryvalueofthe
itemsinyourcompilation.
Chooseavaluefromtheremainingunassignedpercentageofthetotal
Inventoryvalueofyouritems.Forexample,ifyouassigned60%of
thetotalinventoryvaluetoclassA,thenyoumustchooseavalue
between0%and40%forthenextclass.
UnmatchedItemsandNumbers
Ifthevaluethatyouenterdoesnotexactlymatchanitem,thenOracle
Inventorychoosesthefirstitemwithavaluegreaterthanthenumber
Thatyouentered.

UPDATE'ABC'ASSIGNMENTS
UpdateABCAssignment
ChangetheABCclassesofitemsinanABCgroup.
Forexample,youmaywanttoassignanitemtoaclassofhigher
valuebecauseofitssignificancetoyouroperations.
AddNewItems
AddnewitemstoyourABCgroupwithouthavingtorecompileand
thenreassigntheitemstoclasses.
Forexample,youmadeyourassignmentbasedonhistoricalusage
Value.Youhaveaniteminyourinventorythatwillhaveahigh
usagevalueandshouldbean"A"item,butwasclassifiedasa"C"
itemduetotheitem'spositionintheDescendingValueReportforthe
compilation.YoucanreclassifythisitemtobeanAitem.
AssignItemstoClasses
YoumayusetheUpdateABCAssignmentsformtoassignitemsto
ClasseswithoutusingtheDefineABCAssignmentsform.
UsetheUpdateABCAssignmentsformtoassignitemstoclassesif
youchoosenottouseanABCcompilationasabasisforclass
Assignments.
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ABCANALYSISREPORTSANDINQUIRIES
UsereportsandinquiryformstoverifyABCanalysisinformation.
Reports
ABCAssignmentsReportlistitemsandtheABCclassesofthe
items.
ABCDescendingValueReportlistitemsinyourABCcompilation
indescendingorderofcompilationcriterion.
InquiryForms
UpdateABCAssignmentscheckclassassignmentofitemswithin
AndABCgroup.
Thefollowingarethestepstodefine,generate,entercounts,make
adjustments,andapprovethecountentries.

PERFORMCYCLECOUNT:OVERVIEW
CycleCounting
Cyclecountingistheperiodiccountingofindividualitemsthroughout
theyear.
Countitemsofhighervaluemorefrequentlythanitemsoflower
value.
Youcanperformcyclecountinginsteadofperformingphysical
inventory,oryourcanusebothtechniquestoverifytheaccuracyof
onhandquantitiesandvalues.
Initialization
Initializationistheprocessidentifyingtheitemsthatyouwantto
cyclecount.
InitializeyoucyclecountbychoosinganABCgroupthatyou
defined.
AutomaticScheduling
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Automaticschedulingistheprocessofchoosingthespecificitemto
Countinatimeinterval.
OracleInventoryallowsyoutochoosehowfrequentlyyouwantrun
theautomaticscheduler.
Thefrequencyofrunningtheautomaticschedulerdeterminesthetime
IntervalforwhichOracleInventoryschedulesitemstocyclecount.
ManualScheduling
Manualschedulingistheprocessofrequestingcountsforanyitemat
Anytime.
Requestcountsforspecificsubinventories,locators,anditems,and
Setthecountforanydate.
DefineCycleCountHeader
Definecyclecountparametersthatapplytogeneralprocessing.
Assignauniquenametoyourcyclecountandusethisnameto
identifyanyfurtheractivityforthiscyclecount.
Defineandmaintainanunlimitednumberofcyclecountsfor
yourorganization.
Forexample,youcanhavetwoseparatecyclecountheadersfortwo
setsofsubinventories.
Specifywhetheryouwanttocyclecountitemsintheentire
organization,oronlythoseitemsinspecificsubinventories.
OrganizationLevelCycleCounting
Enterperiodiccountsforitemsthatexistinalllocationsof
yourorganization.
Forexample,thecyclecount"ORG98includesallitemsin
organizationAUS.
SubinventoryLevelCycleCounting
Enterperiodiccountsitemsthatexistinspecificsubinventories
ofyourorganization.
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Forexample,thecyclecountFLOOR98includesallitemsin
subinventoryFloorStockwithorganizationSAC.
Ifyouchoosetoonlycountasubsetofyourorganization,use
Thenextpageoftheformtospecifythesubinventoriesto
cyclecount.
SpecifytheItemtoCycleCount
ChooseABCGroup
Choosetheitemsthatyouwanttocyclecount.
YoumustperformanABCanalysisifyouwanttoassociate
anABCgroupwithyoucyclecountheader.
OracleInventoryusestheABCgrouptodeterminetheitems
inyourcyclecountheader.
InitializeCycleCount
OracleInventoryupdatestheexistingcyclecountclassesand
associatesitemswiththeABCgroupthatyouspecify.
Theinitializationprocessdeterminestheitemstocyclecount
withinyourorganizationorsubinventories.
YoumayaddanABCclasstoyourcyclecountwithoutrunning
Theinitializationprogram.Inthiscase,youmustmanuallyadd
itemstotheABCclasswithinyourcyclecountheader.
EnterCountFrequencies
Enterthefrequencywithwhichyouwanttocountitemsineach
class.
Typically,youwouldcountABCclassesofhighrelativevalue
morefrequentlythanyouwouldcountABCclassesoflow
relativevalue.
EnterSchedulingParameters
EnterCycleCountCalendar
Specifyamanufacturingcalendarandexceptionsetcombination
sothatOracleInventorycanautomaticallyschedulecountsfor
validworkdays.
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Thecyclecountcalendarcanbedifferentfromyour
organization'sworkdaycalendar.Forexample,youcanchoose
toperformcyclecountingondaysthatdonotcorrespondto
regularworkdaysinyouorganization.
EnableAutomaticScheduling
Theautomaticschedulerchoosestheitemstocountineach
schedulinginterval.
OracleInventorychoosestheitemstocountbasedonthe
frequencywithwhichyouruntheschedulerandthefrequency
withwhichyoucounteachclassofitems.
ScheduleDaily
Runtheautomaticschedulereveryday.
Theschedulerpickstheitemstocountoneachday.
ScheduleWeekly
Runtheautomaticscheduleronceweek.
Theschedulerpickstheitemstocountineachweek.
ScheduleEveryPeriod
Runtheautomaticscheduleronceaperiod.Thecyclecount
calendarthatyouchoosedeterminesthelengthoftheperiod.
Theschedulerpickstheitemstocountineachperiod.
ChangeHeaderNextScheduledDate
OracleInventoryallowsyoutooverrideautomaticscheduling
forperiodwhenyoudonotwanttoperformcyclecounting.
Forexample,youmaywanttosuspendcyclecountingactivity
whenyouperformaphysicalinventory.
Ifyoudonotrunthescheduleronaparticularday,thenit
schedulestwiceasmanyitemsthenexttimeyourunthe
scheduleronthesystemspecifiedHeaderNextScheduleDate.
YoucanchangetheHeaderNextScheduleDatetothecurrent
dateandthenrunthescheduler.Inthiscasetheautomatic
schedulingprogramschedulesthoseitemsthatitwouldhave
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scheduledonthedayonwhichyoushouldhaveoriginallyrun
theprogram.
ScheduleZeroOnhandQuantityItems
SpecifywhetherornotOracleInventoryshouldscheduleitems
thathavesystemonhandquantitiesofzero.
Ifyouhaveitemswithrestrictedsubinventoriesand/orlocators
thenyoucanenableOracleInventorytogenerateacount
requestforeachsuchpredefinedrelationshipevenifthatstock
keepingunithasasystemonhandquantityofzero.
EnterCountEntryControls
EnterDefaultAdjustmentAccount
OracleInventorypostscyclecountadjustmentstoan
adjustmentaccount
TheadjustmentaccountthatyouenterdefaultsintotheEnter
CycleCountsform,butyoucanoverrideandenteranyaccount
whenenteringcountresults.
Chooseoneofthreeapprovaloptionsforyourcyclecount.
RequiredforallAdjustments
UsetheApproveCycleCountAdjustmentsformtoapprove
alladjustments.
OracleInventoryrequiresyoutoapprovealladjustments
regardlessofwhetherornottheyarewithintolerances.
OracleInventoryupdatesystemonhandquantitiesassoonas
approveyouradjustmentsandsaveyourchanges.
RequiredforAdjustmentsOutofTolerance
Enterquantityandcosttolerancelevelsforyourcyclecount.
UsetheApproveCycleCountAdjustmentsformtoapprove
alladjustmentsthatexceedanyofthetolerancelevels.
OracleInventoryupdatessystemonhandquantitiesassoon
asyouapproveyouradjustmentsandsaveyourchanges.
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NotRequiredforAdjustments
YoudonothavetousetheApproveCycleCountAdjustments
formtoapproveanyadjustments.
OracleInventoryupdatessystemonhandquantitiesassoonas
yousaveyourchanges.
EnterApprovalTolerancesForYourCycleCount
QuantityVariancetolerances
Aquantityvariancetoleranceisauserdefinedlimitforthe
differencebetweenthesystemtrackedonhandquantityand
theactualcountquantity
InoracleInventory,youexpresspositiveandnegativequantity
tolerancesaspercentagesofthesystemonhandquantity.
AdjustmentValueTolerances
Anadjustmentvaluetoleranceisauserdefinedlimitfortotal
valueofacyclecountadjustment.
Adjustmentvalue=(systemonhandquantityactualcount
quantity)xcurrentitemcost.
InOracleInventory,youexpresspositiveandnegative
adjustmentsvaluetolerancesasamountsinyoufunctional
currency.
ThreeLevelsofApprovalTolerances
Specifyapprovaltolerancesatthreelevelsofyourcyclecount
headerlevel,classlevelanditemlevel.
Tolerancesthatyousetattheitemlevel(intheDefinecycle
CountItemsform)overridetolerancesthatyousetattheclass
level.Tolerancethatyousetattheclassleveloverride
tolerancesthatyousetattheheaderlevel.
DefineMeasurementErrors
Youmayspecifyapositiveandanegativecyclecount
measurementerrorwhenyoudefineeachitem.
OracleInventorydoesnotmakeanadjustmentatallifyour
countdiffersfromthesystemonhandquantitybylessthan
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thespecifiedmeasurementerror.
Sincethesemeasurementerrorsactuallypreventadjustments
fromtakingplace,youwouldusethemonanexceptionbasis
foritemsyoucannotaccuratelycount.Forexample,ifyou
countyournutsandboltsasaneyeballorweightestimateyou
mightintroduceameasurementerror.
SpecifyHitMissTolerance
Specifytolerancestouseforcyclecounthit/missanalysis
reporting.
Acountisconsidereda"hit"ifitiswithinthesetolerances
anda"miss"ifitisoutsidethehitmisstolerances.
Usehit/missanalysistoevaluateaccuracyofcyclecounting
procedures.
EnableUnscheduledCounts
Entercountsforitemsthatyoudonotschedulebyeither
automaticschedulingormanualscheduling.
SpecifyLateCountDays
Specifythenumberofdaysafterwhichascheduledcount
isconsideredlate.
OracleInventoryusesthelatecountdaystocalculatethe
duedateforeachcount.
ChooseAutomaticRecounts
SpecifywhetherornotOracleInventoryshouldgenerate
foradjustmentsthatexceedtolerances.
YoumustenteranothercountforanitemtowhichOracle
Inventoryassignsastatusof"account."
Recountitemsautomaticallyappearonthenextcyclecount
listing.
Youmustspecifythemaximumnumberofrecountrequests
thatOracleInventorycangenerate.
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Afterthelastrecount,Oracleinventoryrequiresyouto
Approveorrejectthecount.
GenerateAutomaticSchedule
GenerateScheduleRequests
Theschedulingprogrampickstheitemstocyclecountinthe
perioduntiltheendoftheschedulinginterval.
Forexample,aschedulethatyourunweeklypicksmoreitems
tocyclecountthandoesaschedulethatyourundaily,because
theweeklyschedulepicksitemsformoreworkdaysatatime.
OracleInventoryusestheschedulingfrequencyandtheclass
frequenciestodeterminetheitemstocyclecountineach
schedulinginterval.
ScheduleControlGroup
SpecifywhetherornotyouwantOracleInventorytogenerate
schedulerequestsforcontrolgroupitems.
ScheduleZeroOnhandQuantityItems
Ifyouhaveitemswithrestrictedsubinventoriesand/orlocators,
ThenyoucanenableOracleInventorytogenerateacount
requestforeachsuchpredefinedrelationshipevenifthatstock
keepingunithasasystemonhandquantityofzero.
GenerateCycleCountList
GenerateCycleCountList
Thecyclecountlisthasdetailedinformationonthestock
keepingunitstocyclecountandblankfieldsinwhichonecan
Recordactualcounts.
OracleInventoryusestheoutputofthecountgeneration
Programtoproducethecountlist.
EnterCycleCounts
EnterCycleCounts
Enterquantitiesforeachstockkeepingunit.
Youmustgeneratecountrequestsbeforeyoucanentercounts.
Youcanquerytheoutputofthecountgenerationprogram.
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Youcanqueryyourcountsbyanylevelofdetail.
EnterUnscheduledCounts
Ifyouenabledunscheduledcountentryinyourcyclecount
header,thenyoucanentercountsforitemsthatyouhavenot
generatedautomaticormanualschedulerequests.
Forunscheduledcounts,youdonothavetorunthecount
generationprogram.
EnterRecounts
EnterquantitiesforthoseadjustmentsthatOracleInventory
requestrecounts.
Ifarecountadjustmentexceedsanapprovaltolerance,then
OracleInventoryrequestsrecountsuntilyoureachthe
maximumnumberofrecounts.
Ifarecountadjustmentexceedsanapprovaltoleranceafterthe
maximumnumberofrecounts,thenOracleInventoryrequires
youtoeitherapproveorrejecttheadjustment.
CycleCountAdjustments
OracleInventoryprocessescyclecountadjustmentforthose
countsthatdonotneedapproval.
OracleInventoryperformsacyclecountadjustmentbycreating
amaterialtransactionforthequantityandsign(plusorminus)
oftheadjustment.
ApproveCycleCountAdjustments
ApproveAdjustments
OracleInventoryrequiresyoueitherapproveallcountsthatyou
enteredoronlythosecountsthatexceedapprovaltolerances.
Youmayrequestarecountifyoudonotwanttoapproveor
rejectanadjustment.
Arecountrequestappearsonthenextcyclecountlistingthat
yougenerate.
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OracleInventoryautomaticallyadjustsallcyclecountsthat
youapproveonthisform.
EnterApprovedCounts
EntercountsthatOracleInventoryautomaticallyadjusts
withoutrequiringfurtherapproval.
Youhavenowcompletedtheprocessrequiredtodoacompletecyclecount.

Example
HereisanexamplerelatedtothesetupofABCCycleCountSchedule.Forexample:acustomerhas300Aitems,theywanttocounttheAitems12timesperyear.They
wouldliketosetupthesystemsothateachmonththesystemautomaticallyselectsAitems(inourexampleitwouldbe10items/day)andprintsadailycyclecount
requestthefirstdayofthemonth.TheythenwantthesystemtogenerateanotherlistofAitemsforDay2etc.TheprocesswouldberepeateddailyuntilallAitemsare
cyclecountedeachmonth.
Reference:Thread:QuestionaboutABCCycleCountSchedule(http://myforums.oracle.com/jive3/thread.jspa?threadID=1245620&tstart=0)
Dothesetupasfollows:
1.Addall300itemstoclassA
2.MakeCountsperyearforclassA12
3.Automaticschedulefor'Daily'
Theabovesetupwouldensureallthe300itemstobecountedonceoveraperiodofonemonth.

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